Presentation for digital nomads

1. T A X T I P S F O R
D I G I T A L
N O M A D S
C R E A T I V E P R E N E U R C O N S U L T I N G

2. HI, I'M BRADEN
Lawyer
Tax consultant/preparer
Language/travel enthusiast
Enneagram 7

3. T H E B A S I C S
C R E A T I V E P R E N E U R C O N S U L T I N G
The "General Rule"
Income tax
Self-employment tax
"U.S. person"

4. F O R E I G N E A R N E D
I N C O M E E X C L U S I O N
C R E A T I V E P R E N E U R C O N S U L T I N G
Must be:
(1) foreign income &
(2) earned income
A taxpayer must have:
(1) A foreign tax home; and
(2) Either
- be a bona fide resident; or
- be abroad for 330+ days

5. B A N K I N G , F A T C A , &
F B A R S
C R E A T I V E P R E N E U R C O N S U L T I N G
A U.S. person who has a financial interest OR
signature authority over at least one financial
account located outside of the U.S. where the
aggregate value of all foreign financial accounts
exceeded $10,000 at any time during the calendar
year must file an FBAR.

6. S T A T E T A X
R E S I D E N C Y
C R E A T I V E P R E N E U R C O N S U L T I N G
California’s tax laws provide that residents are taxed
on all income.
Nonresidents are only taxed on income from
California sources. Wages are sourced to where the
services are performed. Business/freelance income,
is sourced to where the business carried on. Items
like real estate are based on location. This makes
sense, right? If you sell a house in CA, it’s CA source.

7. S T A T E T A X
R E S I D E N C Y
C R E A T I V E P R E N E U R C O N S U L T I N G
Consider your state tax residency and tax rates.
Alaska, Florida, Nevada, South Dakota, Texas,
Washington, and Wyoming have no income
tax. Two other states, Tennessee and New
Hampshire, only tax dividend and interest income.

8. S T A T E T A X
R E S I D E N C Y
C R E A T I V E P R E N E U R C O N S U L T I N G
Why is this important?
States do not have a foreign earned income
exclusion.
You can save if you plan ahead, but it's tricky to
change state domicile.

9. T A X D E D U C T I O N S
C R E A T I V E P R E N E U R C O N S U L T I N G
Know your deduction & account for them but don't
go crazy and abuse the travel deduction.
Audits suck.
Tip on travel deduction: Must have an actual tax
home, but make sure it's a foreign tax home
because of the FEIE.

10. B I Z E N T I T I E S
C R E A T I V E P R E N E U R C O N S U L T I N G
LLCs vs. Corps
The S Corp Explained -
Saves on SE taxes

11. F R E E D O W N L O A D
W W W . C R E A T I V E P R E N E U R C O N S U L T I N G . C O M / T A X F R E E B I E S

12. S T A Y I N T O U C H
C A T C H M E O N T H E G R A M :
B R A D E N A D A M D R A K E

13. Q U E S T I O N S
B R A D E N D R A K E L A W . C O M
C R E A T I V E P R E N E U R C O N S U L T I N G . C O M